George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
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Hedgehog - Totally agree with this concept. Sadly there are many discussion boards for penny shares where people have put in 6 figure sums for example the Sirius mineral debacle. These shares are what they are -- all the risk on you and none on the BOD. I have a few of these at 1.5p but many more at about 5.5p so it will now have to go some just to pay me back.
Hedgehog - well put - I invested £5k early days and it went up to £50k. For once I took out my profit and bought my other half a Porsche for her 40th. It’s now 3 1/2 years old and she wants a new one - I am back in with double what I started with at a fortunate average of 0.60p sadly I am well under water with my ironveld shares - it only takes one share to cover many many loses - ride the waves
Thanks Jasehem,
You've explained the point I was making exactly.
£1,000 invested at about 1.25p, and sold at 15p, gives a gain of over £10,000, i.e. over 1,000%.
Whereas £1,000 invested at about 15p, even if it becomes a 100% loss, is a loss of just £1,000.
This is a fundamental principle of investing in penny shares.
The downside is always limited, and one winner can more than cancel out few disappointments.
And Giles Clarke has shown with multiple shares that he can deliver these sort of huge gainers.
Maybe the point he is tying to make is that you can only loose the money you invest (maximum downside) but the upside is unlimited - folk laugh and joke about returns of 1000% but it has done it in the past and personally, it was my first share I sold making a profit of 1000%
Hedgehog100,
Can you explain your reasoning behind the folowing comment in your post.
"From there to the early 2017 high of over 15p was a gain of about 2,000%.
Whereas the decline since then has been under 100%."
While factually correct it doesn't make a great deal of sense. If the share price dropped by 100 % from any price it would be zero, so how is a drop of less than 100% something remarkable.
I sympathise with investors who have lost money here (at least on paper), but some have actually made money here.
In early 2014 the share price was barely a penny at one point, and Giles Clarke came on board with a placing at 1.25p:
25/03/2014 13:17 UK Regulatory (RNS & others) Kennedy Ventures PLC Board Appointments and Placing
" ... The Placing will be effected by the issue of 39,150,000 Placing Shares to new and existing investors at a price of 1.25 pence per Placing Share. ...
New Board appointments
The Company is also pleased to announce the appointment of Giles Clarke as Chairman and Nick Harrison as a Director of the Company with immediate effect. ... "
https://uk.advfn.com/stock-market/london/kazera-global-KZG/share-news/Kennedy-Ventures-PLC-Board-Appointments-and-Placin/61578822
From there to the early 2017 high of over 15p was a gain of about 2,000%.
Whereas the decline since then has been under 100%.
Remember that the mining industry in general is very cyclical, so mining shares in general shouldn't be regarded as permanent holds.
Because when a down cycle hits, virtually all mining shares are hit hard, no matter how brilliant the people in charge.
However, over the last three years KZG has continued to build value in the business, paradoxically as it has become much cheaper.
And is also now making exciting new acquisitions at the bottom of the cycle, for a fraction of the price it could pay otherwise.
As well as acquiring the final 25% of its tantalum mine, again at a bargain price.
In addition, KZG CEO Larry Johnson has recently elected to be paid in shares in lieu of $25,000 of his May-December 2020 salary.
Moreover, at a set share price of 0.5p, rather than the prevailing share price later this year.
And no one knows better than Larry Johnson what's coming over the next few months.
But relatively speaking the s.p. hasn't moved up much to reflect positive developments over the last few months, so in my opinion that presents a great buying opportunity, which probably won't last too much longer.
Anything below a penny looks like a real bargain at the moment.